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I see on Stocktwits, Jimzi mentioning t35 for the short sellers (next Tuesday). I assume that is the amount of time that the short seller has to purchase shares within the clearing window mentioned below (I was trying to educate myself on the theory of naked short selling). So the shorts need our shares, but we know the value of the company plus we are we are well down anyway, so best to hold.
What will happen if they fail to purchase and deliver the shares (FTD)? Any ideas what the shorts will do between now and t35 / will there be an epic squeeze?
“Naked short selling is the illegal practice of short selling shares that the investor never actually obtained. Naked short sellers collect money by selling unavailable or non-existent shares. They hope that shares will become available before the end of the clearing window so that they can actually purchase those shares and close out their short before the initial sale is even finalized.
Naked short selling can go very wrong in a number of ways and end up harming the unsuspecting person on the other side of the trade, which is why it’s banned in the U.S. The naked short seller may fail to purchase shares within the clearing window, or they may be forced to close their short trade by a margin call before they get hold of the shares.
That can cause a failure-to-deliver, in which the person on the other side of the trade essentially gets swindled — they pay money for shares without either receiving those shares or getting their money back”.
Is there a record of the shorts anywhere?
There is a record for normal shorting but not naked shorting as it shouldn’t be taking place
Spectral AI has to step up to the plate and report the naked shorting to the SEC and identify the brokers suspected and complain about them.
Not that the SEC cares about naked shorting since they allow it to go on. But at least the company itself needs to show that it is doing something about it.
I read up on Naked Shorting. I think it’s more about the massive financial institutions rather than a tiny $50 million business. Not sure the reward would be worth the risk given the small amount of shares traded each day and subsequent volatility.
Personally I think this share needs some big institutional investors, which is why we moved to Nasdaq in the first place. Very happy he’s at a KPMG event today, but until there are plenty of shares available for institutions to buy, we’re staying here
Yes, feels like this company is still very much under the radar of most investors. Once the Institutions start coming in the Stock price will start to accelerate upwards very nicely. Although, I'd still like to think that it will initially take a big leap upwards once this shorting nonsense is over with / resolved. It's good to see Wensheng at these events and hopefully Spectral AI will be put on the map in due course.